The Globe and Mail reports in its Thursday edition that the Canadian housing bubble appears to have fully deflated, with a 20-per-cent drop in average home prices over 4.5 years. The Globe's Tim Shufelt writes that while boom times aren't returning, the market has stabilized, with steady prices for about five months, indicating we may be at the bottom. If this is the end, what stands out is how well it was contained. The price decline lasted nearly as long as the U.S. housing crash of 2008-09 and was deeper than the 1990s Ontario real estate bear market, making it arguably the most severe correction on record. Yet, there have been few signs of broader economic fallout. Where's the contagion? Why no recession? The economy has shown remarkable adaptability and resilience, with traditional predictors of recessions often failing to hold true in recent years. CIBC economist Benjamin Tal says the downturn was largely a necessary unwinding of the excesses in Canadian housing during the pandemic. He says: "Prices are now where they would have been if COVID was only a bad dream. ... The adjustment is simply undoing a crazy period when people where blinded by low rates and prices went up totally detached from fundamentals."